Building a leading copper & gold company
Corporate Presenta on March 2013 Overview
1 Highlights 2 Leadership 3 Project Por olio 4 Project Profiles 5 Coking Coal JV 6 HSE & Community
Contact Details Highlights
Building a leading copper and gold company Capital Structure (A$) Last trade 7.2 c One of the last great explora on fron ers: highly mineralised and Issued shares 199.2 m vastly underexplored mineral belts known to host large deposits Market capitaliza on $14.3 m Cash $7.5 m Culture of explora on: project genera on through bo om-up Enterprise Value $6.9 m explora on and deep regional knowledge led experienced geoscien sts
Leadership A strategic posi on in emerging mineral belts: por olio of explora on assets with iden fied high priority targets Chairman Denis Gately CEO George Lloyd Strong project execu on: explora on team with decades of combined CFO Mark Langan experience running explora on programs under Mongolian condi ons Chief Geologist Andrew Stewart Exec. Director Ganbayar Lkhagvasuren Experienced management: proven record of mine discovery and development with a strong team built over two decades Strategic Investors Sakari Energy (PTT) 12.4% Value Crea on: through project genera on, prospect ranking and priori za on and ght capital management The Noble Group 9.0% Leadership
Strong team with a balance of technical and commercial experience in natural resources
Denis is a commercial/corporate lawyer, with over 30 years’ experience in the resources Mr Denis Gately sector. He was a partner at law firm Minter Ellison and led the firm’s resources and energy Chairman industry. He was a director of Gloucester Coal Ltd during its recent merger with Yancoal.
George is an engineer with 12 years of corporate finance and direct investment experience in Mr George Lloyd the natural resources sector including substan al experience in Mongolia and other Chief Execu ve Officer resource-rich emerging markets.
Mark is a Chartered Accountant with 25 years experience in public prac ce and commerce. Mr Mark Langan He has worked companies with opera ons in the Asia Pacific region and has substan al Chief Financial Officer listed company experience.
Mr Andrew Stewart Andy is a geologist with +15 yrs mineral explora on, project genera on & evalua on across Chief Geologist several commodi es with Vale and Ivanhoe. Specialist in Asian Copper & Gold Explora on.
Mr Ganbayar Lkhagvasuren Ganbayar has over 15 years experience in the resource sector in Mongolia. Extensive Execu ve Director network of high level contacts in government and business throughout Mongolia.
The Noble Group Hannah is VP of Asset Development & Opera ons at Noble Resources Limited. A lawyer with several Mrs Hannah Badenach years experience in Asia. Hannah was MD of QGX Mongol LLC from 2006 un l the company was sold Non Execu ve Director in 2008. Project Por olio
Copper-gold & gold strategy based on exploring newly recognised mineral districts (emerging belts) Project Por olio
Aggressive & focused explora on • Explora on discovery remains our key driver for value adding growth and for maximising shareholder returns over the long term. A key objec ve of our copper-gold & gold explora on strategy is based on exploring newly recognised mining or mineral districts (emerging belts). The principal targets for XAM’s explora on are porphyry copper-gold & epithermal gold deposits.
Phase 1 - Areas of Interest • Conceptual explora on models South Gobi Explora on Licenses • Favourable host rocks, structures Argalant Uul & Amgalant Long Term Strategy and/or geophysics
Phase 2 - Anomalous Prospects • Strongly anomalous geochemical results Suug Elgen Uul Zost Uul • Exploratory drilling • First approach on ore/deposit quality and infra-structure Medium Priority Projects
Sharchuluut Uul Discovery Phase 3 - Mineralised Prospects • Prospects containing drill intersec ons of mineralised width and grade which would be Oyut Ulaan High Priority Project economic if a sufficient tonnage was located. Confirma on of Resources Phase 4 - Mineral Deposits • Prospects containing mineralisa on of a sufficient ? Inferred width, grade and poten al tonnage to warrant the es ma on of resources • Economic evalua on
Oyut Ulaan
A significant gold-rich porphyry copper district with numerous mineralised porphyry centres • Located within the Dornogovi Province • XAM to earn 100% on a staged basis • Subject to regulatory approval under the new foreign investment law
Au-rich Porphyry Copper District • Large district (40 square kilometres) • Moderately-eroded porphyry environment • High grade, Au-rich structurally controlled porphyry systems with walk- up drill targets • Fer le, oxidized, mineralised monzoni c intrusions and copper- mineralised magne te skarns is reminiscent of the Cadia Cu-Au porphyry deposits in NSW Australia
Stockwork (7662) 2.18% Cu & Tourmaline (7659) 15% Cu & South West (7660) 1.78 g/t Au, 1.78% Cu Stockwork (7661) 1.74% Cu, 1.06 g/t Au 0.66g/t Au 33g/t Ag Sharchuluut Uul
Poten al for large copper-gold resource close to infrastructure
• Bulgan Province of Mongolia, approximately 230km NW of Ulaanbaatar • Approximately 40km NW of the world-class Erdenet Cu-Mo deposit • Rail & road infrastructure is nearby and well-developed
Erdenet Porphyry Trend • Project strategically located within 40km of world class Erdenet mine • Operated by Erdenet Mining Corpora on • Giant porphyry Cu-Mo deposit (2.370 Mt @ 0.38% Cu & 0.013% Mo) • Annual produc on 20 to 25 Mt @ 0.65% Cu
Sharchuluut project • High poten al to discover a large satellite deposit(s) to the Erdenet • Porphyries typically occur in clusters • Poorly explored (current drilling is rela vely shallow)
Regional air magnetic data taken JICA
Magnetite veins (A veins) Hydrothermal / magmatic breccia Elgen Zost Uul
A low-sulphida on epithermal gold with numerous drill targets and untested prospects
• Located within the Dornogovi Province of Mongolia • XAM currently holds 80% through a joint venture • Three shallowly eroded epithermal • Excellent poten al for the discovery of a mul -million ounce Au deposit with bonanza grade shoots
Large License holding • Regional Landsat & geochemical anomalies held by Xanadu • 4 explora on licenses covering approximately 401km²
Regional Geology • Mesozoic Con nental extension • Bimodal volcanism associated with extension • Two explora on targets (1) High grade quartz-adularia epithermal veins (2) Low grade bulk tonnage silicified breccia's (Zost & Suug)
Zost Uul Prospect Exposed silica sinters at Suuj Elgen Uul Prospect Amgalant & Argalant
Targe ng porphyry Cu-Au & epithermal Au deposits in known Mineral Belts • Aggressive Project Genera on • Emerging World-class Porphyry Belt Amgalant (15157X) & Argalant (15259X) • Along strike from OT & Tsagaan Suvarga Cu-Mo deposits Amgalant Prospect Stockwork outcrop Cu Stockwork Porphyry veins • Numerous geochemical & geophysical anomalies • Shallowly eroded Cu ± Mo-Au porphyry environment • Large untested geophysical targets iden fied
Argalant Prospect
Oxide Cu mineralisation Cu Stockwork Coking Coal JV
Mongolian Coking Coal alliance with The Noble Group
• Ekhgoviin Chuluu LLC joint venture company with each party holding 50% • Experienced JV partner validates explora on and project genera on model • Increased access to markets (China & Pacific coast ports) • Ability to fast track project development • Three highly prospec ve projects acquired in 2011/12 • Laboratory results confirm high quality coking coal at Nuurstei
Nuurstei Coking Coal Project is a highly prospec ve coking coal project • Middle to Upper Triassic coal bearing sedimentary package • Numerous moderately dipping thick coal seams • 3,000m reconnaissance drill program completed • Ini al Laboratory results confirm high quality coking coal
Khavtsgait Coal Project is a highly prospec ve coking coal project • Mesozoic coal bearing sedimentary package • Numerous moderately dipping thick coal seams
Javkhlant Coal Project is a highly prospec ve coking coal project • The large (1,005km²) explora on license lies along the south Gobi Basin which is known to host premium coking coal deposits of Permian and Carboniferous age
HSE & Community
Health and Safety • Proven Environmental Stewardship • Xanadu is commi ed to the principles of workplace health and safety as per the Workplace Safety and Hygiene Law of Mongolia • Strong safety culture based on visible and effec ve leadership, ongoing educa on, training, provision of effec ve tools and equipment
Environmental Management • Xanadu's standards, strategies, targets and systems are all designed to manage environmental risks • To facilitate educa on of employees & contractors in rela on to their roles and responsibili es in environmental management in respect to the Company's ac vi es
Xanadu's approach to corporate social responsibility • Communicate honestly and transparently with stakeholders & the broader investment community • Guided by transparency, respect for stakeholders rights, protec on of the environment, and seek to improve the quality of life in the communi es in which the company operates • Assist and support regional development, training, community based projects and small business opportuni es
Summary
www.xanadumines.com
George A. Lloyd MNG: +976 9400 9211 Chief Execu ve Officer HK: +852 6397 3308 [email protected]
Andrew Stewart MNG: +976 9999 9211 Chief Geologist Office: +976 5011 0211 [email protected]
Informa on Not A Recommenda on The views expressed in this presenta on are based on informa on derived from Xanadu's own internal sources and from publicly available sources that have not been independently verified by Xanadu. No representa on, warranty or undertaking, express or implied, is made or given by Xanadu or any of its officers or employees as to the fairness, accuracy, completeness or reliability of that informa on. This presenta on should not be relied upon as a recommenda on or forecast by Xanadu. Any recipient of this presenta on is responsible for conduc ng their own due diligence and other enquiries as to the informa on provided herein. Recipients of this presenta on should seek and rely upon their own legal, tax, financial and accoun ng advice. Any decision to rely on the informa on contained in this presenta on is the sole responsibility of the recipient of this document and Xanadu will not be responsible for any loss incurred by the recipient as a result of any ac ons taken by them relying on the informa on in this presenta on.
Informa on on the Company’s explora on results is sourced from informa on compiled by Dr. Andrew Stewart. Dr. Stewart is an employee of Xanadu Mines and is a Member of the Australasian Ins tute of Geoscien sts and has sufficient experience in the areas being reported on to qualify as the “Competent Person” as defined in the 2004 Edi on of the “Australasian Code for the Repor ng of Mineral Resources and Reserves”. Dr. Stewart consents to the informa on in the form and context in which it appears.